Pakistan seeks Swedish Green Fund backing for EV shift

ISLAMABAD: Federal Minister for Power Awais Ahmed Khan Leghari Thursday sought technical and financial assistance from Sweden’s Green Fund and the European Union to convert Pakistan’s fossil-fuel-powered vehicles, especially motorcycles, into electric ones.

Leghari pitched the proposal during a meeting with Swedish Ambassador Alexandra Berg von Linde, stressing the need for interest-free loans to facilitate the transition for Pakistan’s low-income motorcycle owners. The minister said that Swedish and EU Green Fund could consider providing interest-free loans for the purpose through Pakistani banks, which have a very robust system in place. “There are over 30 million motorcycles in Pakistan, and people in this income group have an excellent track record of retiring loans,” the minister said, suggesting collaboration with Pakistani banks to implement the programme.

The request aligns with Pakistan’s recent reduction in power tariff by 44 per cent for electric vehicle (EV) charging stations, aimed at promoting EV adoption. Leghari highlighted the country’s commitment to renewable energy, with 55 per cent of its power generation last year coming from renewables, and ongoing policy reforms to ensure affordable, sustainable electricity.